By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Union Bank of Nigeria Plc (UBN) Wednesday announced that Union Global Partners Limited, its Core Investors has increased their stake in the Bank.
On the Floor of the Nigerian Stock Exchange (NSE) a Cross Deal from the Asset Management Corporation of Nigeria (AMCON) where a Turnover of about 4.33 billion shares valued at N15.83 billion were exchanged in 55 Deals to consummate this deal.
As at Wednesday, Union Bank gained 18 kobo or 4.92 percent (4.92%) to close at N3.84 per share.
Prior to this time, Union Bank had notified the NSE that it would do a Rights Issue of 1,407,291,667 Ordinary Shares of 50 Kobo each at N6.81 Kobo per share in the ratio of five (5) new Ordinary Shares for nine (9) Ordinary Shares held.
The Bank had said the Rights would enable it raise about N9.5 billion which would give effect to the scheme between the shareholders, AMCON and Union Global Partners Limited.
As earlier reported, a Scheme of Arrangement was signed by the Bank signed with a core investor, African Capital Alliance Consortium (ACA) which would be investing $750 million and would be allotted 60% of the Bank’s total shares, while the remaining 19% shares will be allotted to the Asset Management Corporation of Nigeria (AMCON) and 21% to existing shareholders.
Union Bank had said following injection of Fresh Capital by the AMCON, which raised the Capital Base from negative to zero, following which Union Global, the new Core Investors, invested $500m in Tier 1 capital.
Meanwhile, the increased accumulation tendency witnessed in Financial Services Sector of the Nigeria’ Exchange Wednesday; particularly towards Union Bank contributed to the improved Market Turnover significantly as noted above while a renewed bargain tendency was observed towards the stock.
